Money Management Experiment

Discussions about Money Management and Risk Control.
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Posts: 3
Joined: Sat Apr 19, 2003 8:09 am
Location: Austria

Money Management Experiment

Post by Thomas » Thu Nov 11, 2004 11:06 am


I'd like to invite you to download a free Microsoft Excel simulation.
The purpose of this Money Management Experiment exercise is to show the importance of a sound position size in a positive expectation environment.

The Money Management Experiment is available for download from

1) download the simulation onto your computer (please do NOT open the Excel workbook directly from the Internet)
2) run the experiment
3) send the CSV report (created automatically) via e-mail

Experiment Example:
Assume that you are initially given 10000, and the opportunity to play the following game many times. First, you need to decide how much of your current equity to put on risk. You win with a probability of 6/10; otherwise, you lose your bet. So if you initially had 10000 and you bet 500, you will have 9500 with a probability of 4/10; otherwise, you have 10500. You are allowed to continue playing a 100 times or as long as you have money (sic!).

Thanks for help and time.
Any help is appreciated.

Thomas Pfluegl

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